According to regulatory and business sources cited by Reuters, India's insurance regulator has suggested to the government that insurers be permitted to purchase above 10% of unlisted companies without permission.
The action may open up new funding options for businesses in Asia's third-largest economy, particularly those that employ technology to expand access to insurance.
Insurance companies are not currently permitted to invest in unlisted enterprises without the IRDAI's approval.
One insider added, "The Finance Ministry is examining IRDAI's recommendation and is looking to make the modifications in the law."
